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Virgin Blue’s Chief Commercial Officer, Stefan Pichler, said, “We are disappointed to have to make these changes however the commercial reality is that despite our best efforts and those of other stakeholders, we have been monitoring unsatisfactory loads for some time, and demand for these flights has been below our initial expectations.”

He continued, “Virgin Blue remains committed to the Northern Territory with our direct daily flights between Brisbane and Darwin as well as Melbourne and Darwin. We will continue to review possibilities and to work closely with both the Northern Territory Government and Northern Territory Tourism Commission.

“Supply and demand for air services is a moving study based on many variables, including support from various customer groups, airport charges and other operating costs. Our responsibility is to respond to convincing opportunities and to seek a stable and profitable base to ensure Virgin Blue is able to operate viable travel options to and from the Northern Territory for many years to come.”

Guests booked on direct flights between Adelaide and Alice Springs for travel after September 4, 2005 will be offered a full refund while Guests booked on direct Darwin - Sydney flights will be re-accomodated on connecting flights or offered a full refund.

“We are very sorry to let down those Guests who have supported Virgin Blue, which is why we have committed to continue the flights for the next two months so as not to inconvenience our loyal flyers,” Stefan Pichler finished.